Presentación de PowerPoint - Hortifrut · 3.1% 2.9% 2.3% 1.9% 1.0% 0.8% 0.7% 0.2% Blueberries Tangerine Avocado Pineapples Mangoes Lemons Kiwifruit Strawberry Papayas Cherries Bananas

CORPORATE PRESENTATION

Berries to the world “eberry” day September 2019

2

Agenda

THE INDUSTRY

A “berry” attractive industry1.

THE COMPANY

A global leading player2.

BUSSINES MODEL

Constantly innovating & capturing global trends3.

3

Agenda

THE INDUSTRY


THE COMPANY


BUSSINES MODEL


11.5%

8.6%

7.9%

4.4%

4.3%

4.2%

3.1%

2.9%

2.3%

1.9%

1.0%

0.8%

0.7%

0.2%

Blueberries

Tangerine

Avocado

Pineapples

Mangoes

Lemons

Kiwifruit

Strawberry

Papayas

Cherries

Bananas

Apples

Oranges

Grapes

4

Consumption Rate

The Fruit With The Fastest Growing Consumption Rate

1. 2017 US PER CAPITA CONSUMPTION. (10 year CAGR) 2. 2017 US PER CAPITA CONSUMPTION. (Kg/year)

In the last 10 years,

blueberries

consumption per capita

in the US has tripled

12.9

8.0

3.8

3.7

3.6

3.5

3.4

2.7

1.9

1.5

1.2

1.2

0.8

0.7

Bananas

Apples

Strawberries

Oranges

Pineapples

Avocado

Tangerines

Lemons

Mangoes

Peaches

Blueberries

Cherries

Papayas

Kiwifruit

Source: USDA

0

500

1,000

1,500

2,000

2,500

3,000

Berries16%

Bananas24%

Apples15%

Oranges & Tangerines

15%

Grapes7%

Others23%

5

Consumption Rate

Source: U.S. Department of Agriculture and Journal of American Chemical Society

(1) ORAC: Oxygen radical absorbance capacity – mmol trolox equiv/100gr

Why is this happening?

Highest antioxidants levels, becoming the most

important market in terms of value in the US

Antioxidants: ORAC Value(1)

Berries

#2US FRESH FRUIT MARKET BREAKDOWN

(% Vol.)

6

Industry Trends

Why is this happening?

Berries are considered as “Superfoods”, positioning as one of the preferred food among high

income countries

Low CalorieHigh fiber

content

Rich in

antioxidants

Vitamin C FlavonoidsLong shelf

life

“The appeal of blueberries to health-conscious consumers is tied to their extremely rich in antioxidants properties,

low calorie intake, high in fiber and nutrient content, and that blueberries may contribute to heart health since they

appear to act as an anti-inflammatory and may also reduce blood cholesterol levels”(1)

(1): Agriculture and Agri-Food Canada

1. Consumers getting healthier. “Superfoods” on the

rise

2. Convenience as one of the most important attributes

of products/services

3. Attractive product with convenient formats for every

meal

4. Genetic development focused on the latest consumer

trends and tastes

5. Year-round supply

6. Social & Environmental responsibility. Fair trade

7

Strong Demand Growth & Resilient Prices

1. BLUEBERRIES – CONSUMPTION & PRICE TRENDS.

0

2

4

6

8

0

100

200

300

400

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

USA Europe Emerging Markets Price

000’ Tons US$/kg

0

2

4

6

8

10

0

100

200

300

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


000’ Tons US$/kg

2. RASPBERRIES – CONSUMPTION & PRICE TRENDS.

3. STRAWBERRIES – CONSUMPTION & PRICE TRENDS.

0

1

2

3

4

0

500

1,000

1,500

2,000

2,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


000’ Tons US$/kg

0

2

4

6

8

0

20

40

60

80

100

120

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

USA Price

4. BLACKBERRIES – CONSUMPTION & PRICE TRENDS.

Source: U.S. Department of Agriculture, UN Comtrade

(1): Volume CAGR between 2007 and 2017

000’ Tons US$/kg

8

Blueberries Consumption Cycle

Room for supply during high price windows

0

5

10

15

20

0

2,000

4,000

6,000

8,000

10,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

USD

/ KgT

ons

Week

Volume Price

1. 2018 US BLUEBERRIES CONSUMPTION CYCLE. (volume/price)

Source: USDA, Agronometrics

2. 2018 IMPORTS BY ORIGIN TO THE US MARKET (LATAM). (volume)

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

January February March April May June July August September October NovemberDecember

2018

Tons

PERU

MEXICO

CHILE

ARGENTINA

URUGUAY

8,000

6,000

4,000

2,000

1,000

0

Maximum weekly demand 8k tons

26%

18%

15%

11%

8%

7%

5%

3%2% 2% 2% 1%Germany

United Kindom

France

Netherlands

Belgium

Italy

Austria

Switzerland

Norway

Sweden

Denmark

Ireland

9

Opportunities to Penetrate New Markets

1. 2017 BLUEBERRY CONSUMPTION FOR SELECTED

COUNTRIES. (grams/year)(1) 2. ATTRACTIVE & UNDEREXPLOITED COUNTRIES.

3. EUROPE BERRIES IMPORTS IN 2017. 4. EMERGING MARKETS BERRIES IMPORTS IN 2017.

1,080

791

691

655

357

98

7

Canada

US

Netherlands

UK

Germany

Mexico

China

669k

tons

35%

26%

23%

12%

4%0%

Hong Kong

China

Singapur

Japan

South Corea

Brazil

48k

tons

Source: The Company, UN Comtrade

(1) USDA, Trademap, Factfish

Singapore

10

Agenda

THE INDUSTRY


THE COMPANY


BUSSINES MODEL


11

Hortifrut at a Glance

50%

30%

10%

9%

N. America Europe

S. America Asia & Others

▪ Hortifrut is a company dedicated to the growing, supply and

marketing of berries worldwide, vertically integrated from

genetics to the end customer

▪ It is the #1 company in sales of blueberries worldwide and #2

in sales of berries

▪ Serves +35 countries through commercial platforms and

strategic alliances, allowing it to deliver “berries for the world,

every day”

▪ Listed in the Santiago Stock Exchange (HF CI Equity) since 2012

and has a market capitalization of ~US$1.3 b(1)

DistributionGrowing Serv./Exports

Growth Revenue Breakdown(2)

Blueberries

Blackberries

Raspberries

Strawberries2

Cherries

1. COMPANY OVERVIEW.

3. GEOGRAPHICAL DIVERSIFICATION IN GROWTH &

MARKETING.

US$551

mn

2. BUSINESSES.

4. EBITDA BREAKDOWN PER BUSINESS.

68%

23%

9%

Growing

Serv./Exports

Marketing

S18/19

▪ ~3.8 k planted has

▪ ~3.6 k productive has

▪ 25(3) licenses of genetic varieties

▪ From 9 countries▪ Serves +35

countries, 365 days of the year

▪ 30 distribution centers around the world

▪ 20-25% market share in distribution of blueberries

(1) Information as of Sep19 (2) As of Jun19 LTM

(3) Varieties developed internally and acquired from third parties

12

Worldwide Presence

Peru57%

Chile21%

Mexico 6%USA6%

Spain3%

Argentina2%China

4%Morroco 1%Brazil

0%

Peru60%

Chile20%

Mexico6%

USA7%

Spain3%

Argentina2%

Morroco0%

Brazil0%

Allows to mitigate business risks

EE.UU(1):

▪ 237 planted

has (org.

blueberry)

▪ 237

productive has

Mexico:

▪ 225 planted has

(conv. blueberry &

raspberry)

▪ 215 productive has

Peru:

▪ 2,164 planted has (conv.

and org. blueberry

▪ 2,164 productive has

Argentina1:

▪ 77 planted has (conv.

blueberry)


Brazil:

▪ 13 planted has

(raspberry, blackberry

& strawberry)


Morocco(1):

▪ 20 planted has

(raspberry, blackberry)


Spain:

▪ 108 planted has

▪ 96 productive

has

China:

▪ 230 has project

(conv. blueberry)

▪ 147 planted has


PLANTED HAS

3,577

has

PRODUCTIVE HAS

3,808

has

Chile:

▪ 818 planted has (conv. &

org. blueberry, cherries

and others)


The hectares planted do not include the area of third-party producers

(1) JV: 50% owned by Hortifrut and managed by partners

Growing, supply & marketing

Commercial office

Our History

13

Merger with

Vitalberry

Marketing

Hortifrut

initiates

operations in

Chile

Naturipe

Farms is born

in the United

States

Hortiufrut

España is

created

Largest

Producer in the

World in Organic

Products /

Brazil opens

JV with

Mungers

Bros. in

California and

Oregon

Hortifrut

initiates

exports of

berries to the

United States

Initiates exports

from Mexico

and Guatemala

RTE is created

to suppy Food

Service and

other

segments

M&A with

Grupo Rocío in

Perú

Globalization

Globalization

Creats an industry

Integration

Integration Add value

Anticipates a

trend /

globlization

Opens

innovation

Consolidation Globalization

Consolidation

IPO

JV Grupo Rocio

JV JoyWingMau

Growth Globalization

and integration

Launching of

platform

Agrinnovation

and Blue

Challenge

Hortifrut and

Atlantic Blue

creat Euroberry

Marketing

Initiates

operations in

Argentina

Integration

Always innovating

1983 1984 1990 1995 1999 2000 2004 2008 2012 2013 2014 2015 2016 2018 2019

Local Bonds

Issuance &

Capital

Increase

Growth

Portfolio of Projects

14

▪ Strategic alliance signed with Joy

Wing Mau for the joint development

of the farming and distribution of

berries.

▪ The current project contemplates

230 ha of conventional blueberries

in pot (high density of plantation,

10,000 plants/ha) in 3 stages.

▪ The Capital Increase will finance

130 ha from phase II and additional

250 ha project (phase III).

▪ In addition to the 234 ha that

Hortifrut has in Mexico the

Company will expand its operations

and berries’ varieties to

commercialize them in the North

American’ spring window.


280 has of blueberries and 250 ha

of raspberries.

▪ Atlantic Blue, Hortifrut’s European

Strategic Partner, already has

plantations in Morocco. Hortifrut

plans to grow its joint operation.


500 ha of blueberries, to be

planted in 2 stages + packing

facility

MEXICO CHINAMOROCCO

At Extraordinary Shareholders’ Meeting, held on April 30, 2019, a capital increase of US$160 million was approved. The funds

from said capital increase will be destined to financing organic growth in the countries that supply the markets of North

America, Europe and Asia, during all the weeks of the year.

Sustained Revenue Growth & Healthy Balance Sheet

15

1. REVENUE. (US$ mn) 2. EBITDA & EBITDA MG. (US$ mn & %)

3. NET INCOME & NET MARGIN. (US$ mn & %)

247

312363 372

395447

551

S12/13 S13/14 S14/15 S15/16 S16/17 S17/18 S18/19

28

4250

5561

48

106

12%

14% 14% 15%15%

11%

19%

0.00%

5.00%

10.00%

15.00%

20.00%

0

20

40

60

80

100

120

140

S12/13 S13/14 S14/15 S15/16 S16/17 S17/18 S18/19

Note:

(1): Pull up of productive hectares in Mexico for varietal replacement

(1)17

22 2031

8

20

697% 7%6%

8%

2%

5%

12%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

0

20

40

60

80

100

120

140

S12/13 S13/14 S14/15 S15/16 S16/17 S17/18 S18/19

Change

in IFRS

Includes US$44.5

mn for HFTal

value adjustment

1.01.3 1.4

1.72.3

3.84.4

3.3

S12/13S13/14S14/15S15/16S16/17S17/18S18/19 S18/19Post -money

10.712.7 12.8

17.719.6

8.2

4.2

S12/13 S13/14 S14/15 S15/16 S16/17 S17/18 S18/19

0.91.1 1.0 0.9 0.9

1.71.5

0.9

S12/13 S13/14 S14/15 S15/16 S16/17 S17/18 S18/19 S18/19Post -money

Solid Financial Position Throughout its History

16

1. NET FINANCIAL DEBT/ EBITDA. (x) 2. LIABILITIES/EQUITY. (x)

4. NET FINANCIAL EXPENSES COVERAGE. (x)3. NET FINANCIAL DEBT/EQUITY. (x)

TalSA acquisition.

Without this, ratio

would be 1.1x

0.20.3

0.30.4

0.6

0.7

0.9

0.5

S12/13S13/14S14/15S15/16S16/17S17/18S18/19 S18/19Post -money

Covenant Dec < 6,0x

Covenant Jun < 4,5x

Covenant Jun > 4,0xCovenant Jun < 1,0x

Note: Figures as of Jun19

(1) Post capital increase for US$132 million (exchange rate CLP/USD of $716 as of August 7th 2019).

(1)

(1)

(1)

93

45 4953

58

43 39

2313 9

76

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019+

Debt Structure

17

1. FINANCIAL DEBT BY TYPE. (US$ mn) 2. FINANCIAL DEBT BY CURRENCY. (US$ mn)

4. AVAILABLE CREDIT LINES. (US$ mn)3. AMORTIZATION PROFILE. (US$ mn)

Note: Figures as of Jun19

74%

19%

4% 3%

Bank Loans

Bonds

Leasing

Others

US$506

mn

88%

9%3%

USD

Euros

Others

US$506

mn

31%

69%

Used

UnusedUS$250

mn

US$77 mn, working

capital revolving

financing

18

Agenda

THE INDSUTRY


THE COMPANY


BUSSINES MODEL


Vertically Integrated Business Model: From Genetics to Final Consumer

19

DISTRIBUTIONIMPORTSEXPORTSFARMINGVARIETAL

DEVELOPMENT &

NURSERY

+3.8 KPlanted Has

Worldwide1

7Exporting

countries

▪ Commercial

offices:

▪ Distributing

countries:

(1): Doesn’t include third parties’ plantations

(2): HF owns 47% in average

25Genetic

Varieties

ASIA

• SVA Fruits

• San Clemente VBM

Own Platform

Proprietary Brands

USA Europe Brazil Chile

HAS

• Owned: 2,497

• Partnership2: 1,311

Unique Business Model

20

DIGITAL PLATFORM

More & better

customers and

consumers

Best Global Growing Practices

Innovation,

Breeding

and

Digitalization

Enhancing Customers

Satisfaction

More & better Hortifrut

growers

SUSTAINABILITY

“HORTIFRUT connects the best growers

with the best customers by supplying the

best fruit for its worldwide consumers,

creating a virtuous circle that grows based

on innovation, better genetics,

sustainability and digitalization of its

processes.

21

Proprietary Brands & Global Alliances

▪ ~70% of revenues come from proprietary brand products

▪ Portfolio of brands with clear positioning and strong

recognition:

• North America & Asia: Naturipe

• Europe: Euroberry, Southern Sun & Berry Collection

• Emerging Markets: Berry Good, Naturipe and Southern

Sun

▪ Naturipe farms is the 2nd largest berries distributor in the

world with its brand Naturipe and #1 in blueberries. The

brand has +100 years in the berries business Brands target markets

1. BRANDS PORTFOLIO.

2. FIRST CLASS PARTERSHIPS WORLDWIDE.

▪ +25 years of experience in the blueberries industry

▪ Main blueberries grower in Andalucia

▪ Genetic development is in the core of its business through its affiliate Royal Berries

▪ In the last years, the company has expanded its operations to Morocco

▪ +16 years of experience in the blueberries industry

▪ Main grower of pistachios and blueberries in the US west coast

▪ Fast growing company, with a vertically integrated business model. The Company has plantations in California, Oregon and Washington. Headquartered in Delano, CA.

▪ One of the 4 shareholders of Naturipe Farms

▪ One of the main blueberries and kiwis grower in China. Recently has made JV’s in Chile and Australia

▪ The company merged with Golden Wing Mau to grow, store, pack, import/export and sell fresh products

22

Year Round Supply

Hortifrut’s production windows per product allows counter-season supplyJAN FEB MAR APR MAY JUN JUL AUG SEP O C T NOV DEC

CHILE

ARGENTINA

URUGUAY

PERÚ

MEXICO

SPAIN

MOROCC O

USA

CHINA

B LU E BE RR IE S

CHILE

MEXICO

SPAIN

MOROCC O

BRAZ IL

US A

CHILE

MEXICO

SPAIN

BRAZ IL

US A

CHILE

RAS P BE RR IE S

CHILE

MEXICO

SPAIN

MOROCC O

BRAZ IL

US A

BL ACKBE RR IE S

S TRAW BE RR IE S

CHERRIES

Includes organic production

Genetics: Constant Innovation to Create New Varieties

23

▪ Hortifrut owns two genetic focused companies:

• Pacific Berry Breeding, focused in developing new

varieties of raspberries and blackberries

• Berry Blue, JV with Michigan Blueberry Growers,

focused in developing new varieties of blueberries.

Hortifrut’s Genetic Development

+17Other varieties

Rationale behind Genetic Development

Producers’ Objectives

Improve yields

Extend fruit’s shelf life

Good-

appearance

fruit

Hit the right

windows

Good taste

Good texture

& size

Consumers’ Needs

Blueberry Proprietary Varieties

24

Leaders in Productivity & I+D

Innovation & Technological Development

▪ Strong track record of developing systems and initiatives to increase

productivity

▪ ~US$3 mn annually in investment to develop or acquire different

innovative projects:

1. AgroID: Technological tool to control the harvest in real time

2. Blueye: Tool that replace human eye for a multispectral camera to

automate the quality control process and improve data management

3. Unitec: Technology implemented to improve the blueberries

selection and packaging

4. Planting technologies: Hortifrut is constantly researching for new

and more efficient methods to produce berries

• In 2018, 14% of Hortifrut’s EBITDA was generated through

several innovation projects along the value chain (Innovation

Intensity Index – Audited by INNSPIRAL(1))

• The 5-year goal is that 30% of the EBITDA comes from

innovation projects

1

2

3

4

1 2

2 3

3 4

4 4

14%30%

5-year

EBITDA Goal

Source: Company

(1) Accelerator of corporate innovation

25

Maximizing Value Through Data Analytics

PRODUCTION FORECASTING

MODEL

LEVERAGING INTERNAL AND EXTERNAL DATA SOURCES USING APPLIED MACHINE LEARNING

Weather Pre & Post

Harvest

Management

Logistics Customers &

Destinations

Fruit

GeneticsExpertise &

Know-How

Maximize economic value by allocating the right fruit to the right customer

Improving decision-making through the use of advanced Predictive and

Prescriptive models

QUALITY PREDICTION

MODEL

BLUESQUID MATHEMATICAL

OPTIMIZATION

MODEL

26

Sustainability

Hortifrut’s Purpose, Vision and Mission

Purpose

Vision

Mission

“Touching and enlightening the life of people by delivering the most wonderful and healthy

berries, through its team and partnerships around the world, caring about the environment and

the community”

To be the world leader within the Berry category

“Berries for the world everyday”

B Corp Certification

▪ Awarded in 2018 to Hortifrut Chile S.A. (Subsidiary of HFSA)

▪ Largest Company in Chile with a B Corporation Certificate

▪ Recognition for Hortifrut’s good practices in its Corporate Governance and

Transparency Policy, as well as its relationship with collaborators, communities

and the environment

▪ In the long term, Hortifrut plans to certify all of its subsidiaries to boost its

positive impact in the world

27

Main Takeaways

1. Vertically integrated global platform that

operates through strategic alliances in countries

with solid macroeconomic fundamentals

2. Global leadership: #1 in blueberries and #2 in

berries, worldwide. Best suited to capture positive

trends in this fast growing industry

3. Long term sustainable business model

4. Highly profitable company with a solid and

conservative financial position

28

This presentation may contain projections, which constitute statements other than

historical facts or current conditions, and include, without limitation, the current

vision and estimate of future circumstances, conditions of the industry, the market

and performance of Hortifrut S.A. and / or its subsidiaries and associates

(hereinafter, the "Company" or "Hortifrut"). Some of the projections can be

identified by the use of the following terms, not restrictive: "could", "should",

"anticipates", "believes", "estimates", "expects", "plans", "pretends", "Project" and any

other similar expression. Examples of projections are, among others, the statements

regarding future market shares, projected future competitive strengths, the

implementation of relevant operational and financial strategies, the direction of

future operations, and the factors or trends that affect financial conditions,

liquidity or operational results. These statements reflect the current vision and

estimation of the Company's Management and are subject to various risks and

contingencies. There is no certainty that the expected events, trends or results will

actually occur. These statements are formulated on the basis of the interpretation

of numerous assumptions and factors, including general conditions of the economy

and the market, industry conditions and operational factors. Any change in the

referred assumptions or factors could cause the current results of Hortifrut and the

projected actions of the company to differ substantially from the present

expectations. It is expressly stated that this document has a purely informative

purpose, not having or claiming to have any legal scope in its content. Likewise,

none of the information contained in this document has the intention or purpose of

being an investment recommendation, legal or of any other nature.

Disclaimer

29

Corporate PresentationSeptember 2019

Documents

Presentación de PowerPoint - Hortifrut · 3.1% 2.9% 2.3% 1.9% 1.0% 0.8% 0.7% 0.2% Blueberries Tangerine Avocado Pineapples Mangoes Lemons Kiwifruit Strawberry Papayas Cherries Bananas